Mon, Nov 17, 2014 - Page 13 News List

Uni-President working out compensation

By Amy Su  /  Staff reporter

Uni-President Enterprises Corp (統一企業) yesterday said it is working on a plan to compensate consumers who have bought products with coconut oil intended for animal feed, adding that the plan could be ready in a week.

Democratic Progressive Party Legislator Lin Shu-fen (林淑芬) on Friday released a Food and Drug Administration (FDA) report that showed problematic coconut oil had been used to produce 23 Uni-President Enterprises products between Aug. 20 and Oct. 31, 2012.

The food conglomerate bought 47 tonnes of coconut oil through its oil and fat-producing subsidiary, President Nisshin Corp (統清), which procured the oil products from Ting Hsin Oil and Fat Industrial Co (頂新製油實業), which in turn imported them from Vietnam-based manufacturer Dai Hanh Phuc Co Ltd (大幸福).

“The company will follow a strategy to claim compensation from upstream providers and make compensation for consumers at the same time,” spokesman Tony Su (蘇崇銘) told a news conference in Taipei yesterday.

Since the oil-tainted products would have all passed their expiration dates and are no longer on the market, Su said the company would come up with a compensation program within a week to fit in customers’ demands.

Uni-President Enterprises plans to file a criminal lawsuit against Ting Hsin within a week, followed by civil suit for damages to its reputation, Su said.

Uni-President also said that it would improve its material traceability management and plans to import materials from nations that have a high reputation in food safety.

It said it might face weakened profitability because of the proposed compensation program.

Uni-President posted 16.21 percent annual decline in net income for the first nine months of this year, from NT$10.12 billion (US$329.3 million) to NT$9.2 billion.

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